The original UFC's were a bit fixed. The Gracies wanted to use it as tool to market Gracie BJJ, which is fine... but they didn't allow other grapplers into the event. For example, Oleg Taktarov, a Russian Sambo expert, who eventually won a UFC event, was denied entry into the first few UFC's. With his size advantage, there is a good change he would have beaten Royce Gracie.

I've followed UFC and MMA since UFC1, but I don't think watching all the earlier events is really a necessity for understanding modern MMA. I think, if for time contraints alone, you should just watch footage of some of the pioneers and legends in the sport; guys who changed the fight game. Obviously Royce Gracie is one of those fighters.